New regime slabs for FY 2026-27
Nil up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above. A standard deduction of ₹75,000 applies to salary, and the Section 87A rebate makes tax nil for taxable income up to ₹12 lakh. Health and education cess of 4% is added to the tax.
Old regime slabs
Nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, with a ₹50,000 standard deduction and a rebate for taxable income up to ₹5 lakh. The old regime allows deductions such as 80C (₹1.5 lakh), 80D, HRA and home loan interest, which is why it can still win for people with large deductions.
Which regime should you choose?
With the ₹12 lakh rebate, most salaried people earning up to about ₹15 lakh pay less under the new regime unless they claim over ₹3.5–4 lakh of deductions. Run both numbers above; the regime can be chosen each year when you file.
Frequently asked questions
Is the new regime the default?
Yes. Since FY 2023-24 the new regime applies unless you opt out when filing or through your employer.
Does this include surcharge?
No. Surcharge applies above ₹50 lakh of income and is not included here.
What is the last date to file ITR for FY 2026-27?
31 July 2027 for most salaried individuals, unless extended.